Minimum Requirements of Auto Insurance in North Carolina

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North Carolina requires all licensed drivers and registered vehicles to meet the state’s minimum liability insurance requirements. As a result, drivers must show proof of insurance when registering their vehicle and carry the coverage throughout the entire registration period. Failure to maintain consistent insurance coverage on the registered vehicle can result in the revocation of the vehicle’s registration, as well as suspension of driving privileges.

BI/PD

North Carolina requires drivers to carry bodily injury and property damage, or BI/PD, coverages to protect the other party against injuries and damages that you may cause during an accident. The minimum liability coverage is $30,000 per person, $60,000 per accident and $25,000 in property damage, or 30/60/25.

UM/UIM

North Carolina requires drivers to protect themselves from uninsured and underinsured drivers. This UM/UIM coverage must be at least $30,000 per person and $60,000 per accident.

State Mandates

The North Carolina Department of Insurance and the Division of Motor Vehicles are vigilant in ensuring that the state's drivers maintain consistent insurance. As a result, all insurance carriers that are licensed to conduct business within the state are required to notify the Division of Motor Vehicles when a policy lapses for any reason.

Verification

If the North Carolina Division of Motor Vehicles receives notification that your auto insurance policy has been canceled, you will receive notice from the division. The notice, or FS 5-7 Notice, will request policy information. You must return the notice with the requested information to the Division of Motor Vehicles within 10 days from the date listed on the notice. If there is a lapse in insurance coverage, your completed FS 5-7 must include a re-certified Certificate of Insurance, or FS-1, from the insurance company, as well as the applicable penalty amount.

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